Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Fletcher Building's annualized net income for the quarter that ended in Dec. 2025 was $-13 Mil. Fletcher Building's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,743 Mil. Therefore, Fletcher Building's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -0.73%.
The historical rank and industry rank for Fletcher Building's Return-on-Tangible-Equity or its related term are showing as below:
FRCEF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -16.24 Med: 5.44 Max: 23.27
Current: -10.1
During the past 13 years, Fletcher Building's highest Return-on-Tangible-Equity was 23.27%. The lowest was -16.24%. And the median was 5.44%.
FRCEF's Return-on-Tangible-Equity is ranked worse than 86.65% of 397
companies
in the Building Materials industry
Industry Median: 5.08
vs FRCEF: -10.10
Fletcher Building (OTCPK:FRCEF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Fletcher Building Return-on-Tangible-Equity Related Terms
Fletcher Building Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fletcher Building's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRCEF vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Fletcher Building's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fletcher Building Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fletcher Building's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fletcher Building's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -0.73% mean?
Fletcher Building (FRCEF) has a Return-on-Tangible-Equity of -0.73% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fletcher Building and its competitors. According to the industry distribution chart, Fletcher Building ranks #344 out of 397 companies in the Building Materials industry, placing it in the top 86.6%.
Is Fletcher Building's Return-on-Tangible-Equity too high?
Fletcher Building's current Return-on-Tangible-Equity is -0.73%. Based on the distribution chart, Fletcher Building ranks #344 out of 397 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Fletcher Building has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Fletcher Building's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Fletcher Building ranks #344 out of 397 companies for Return-on-Tangible-Equity. This places Fletcher Building in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.08. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.08, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fletcher Building and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher Building's current Return-on-Tangible-Equity is -0.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher Building stock overvalued right now?
Fletcher Building (FRCEF) has a current Return-on-Tangible-Equity of -0.73%. The stock's GF Value™ is $1.17, compared to a current price of $1.63 — trading 39.3% above its estimated fair value. The current Return-on-Tangible-Equity is -0.73%. Fletcher Building's overall GF Score™ is 51/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Fletcher Building (FRCEF), the current Return-on-Tangible-Equity is -0.73% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fletcher Building (FRCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher Building stock appears to be overvalued.
The current stock price of $1.63 is trading 39.3% above its estimated GF Value™ of $1.17.
Key valuation signals for FRCEF:
Return-on-Tangible-Equity: -0.73%
GF Value™: $1.17 vs. price of $1.63 (39.3% above fair value)
No single metric tells the full story. See the FRCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.
51GF Score
Get the complete analysis for FRCEF
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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